Timely Real Estate News…. …………………………………….1 November 2008
************************************************************************************************************************************
The more things change, the more they stay the same……
I keep looking for a “sign” — a good omen — for our real estate industry….a sales trend line that moves upward for consecutive months…a burst in my own business….good economic news on at least a regional level. But as we seem to be treading the real estate waters, so to speak, we’re not sinking, but we just seem to be bobbing up and down.
Life in our Westside waters are pretty much the same we’ve seen all year. We have movement up and down in the four communities I have tracked for over 20 years — this last October, we see that the Median Sales Price for Beverly Hills dropped by 40% vs. an increase from 1% last month and Bel Air, down 67% in September, 2008, was up 30% for October 2008. Brentwood was up again over the previous month –12% for October vs. 33% for September. Beverly Hills Post Office continued to lag behind — down 53% in October; the BHPO community was down 57% also in September (over the previous September 2007).
**************************************************************************************************************************************
Sales for Year To Date remain consistently close to 2007
The real story, however, is in the Year-to-Date (Y-T-D) sales. Only Beverly Hills Post Office is lagging behind 2007 Y-T-D sales — down 17% for this year. But Beverly Hills is even with same Y-T-D figure for 2007, and Bel-Air and Brentwood are just off by 2% from the same-period in 2007.
Sales volume for Y-T-D — which indicates overall market strength — is still hovering around 35% (33% last month Y-T-D). But as Betty Graham, president of the Greater Los Angeles Coldwell Banker Company stated….”buyers need to know there are home loans available today….and more important, the company reported it opened 85% more escrows in September 2008 than in 2007.
Don’t get bogged down with all of this….I don’t want you to get bogged down with all these numbers flying at you — the key point is that the Westside is consistently strong — considering the rest of the country is fighting more than 50% drop off in real estate sales volume — and that is a key sign (omen) that our communities continue to attract buyers who recognize the long-time, inherent values we have in our neighborhoods and area. Homes that are priced accurately in today’s market and are presented well, will sell in a reasonable time — less than existing days-on-market averages. Remember, many sellers are looking in their rear-view mirrors and remembering the good times — when home prices were rising and there were many multiple offers. There still are multiple offers — but for homes that are usually priced just below the true, current market value.
*************************************************************************************************************************************
And, now, a word of thanks to our LAFD helicopter pilots….
I want to take this opportunity to thank the Los Angeles Fire Department water-dropping helicopter pilots, under the command of Glenn Smith….who directed nine helicopters who dropped water on the Sepulveda Pass fire two weeks ago during a dangerous night-time assault. Their valiant efforts saved many homes in the Mountaingate area — so thank you from all of us. It was amazing to watch them “bob & weave” as they made their drops.
**************************************************************************************************************************************
Steps to Insure You Get Fire Insurance
In recent Los Angeles Times article, there were some excellent recommendations on how you can ‘insure’ you can keep or obtain the necessary fire insurance you will need for your home. These are volatile times — the most dangerous times of the year are right now….so here are a few steps you can take:
First, make your property fire-safe. That first step may determine whether you get a policy and how much you’ll pay for it. Clear 300 feet of combustible brush or chaparral surrounding the house (the state requires 100 feet). You can so far as to install roof sprinklers and enclose the eaves. Make sure your landscaping does not include combustible plants like juniper or lavender near the house. What saved many of the Mountaingate homes was the brush clearance that was done by the HOA prior to the fire.
Next, search for an appropriate insurance company. Using either a broker or an agent, find out the various firms’ underwriting policies and prices. You might have to deal with companies that are unfamiliar to you, as some well-known firms have slowed or stopped their fire insurance business in the region. Allstate Corp., for example, stopped selling new homeowner policies in California last year. State Farm Insurance Cos. has become selective about where it offers insurance. Homeowners in high-risk zones unable to get policies from large national carriers may qualify for a so-called surplus line from companies that are not overseen by the state. Those policies typically are arranged through insurance brokers. Some companies may require additional fire prevention work — beyond the usual safety measures
A last resort….Sometimes it’s impossible to get insurance from any company according to the Los Angeles Times article. And if that’s the case, you can purchase a policy under the California Fair Plan, a government- and insurance-industry-sponsored alternative that offers property insurance to those deemed too risky by other companies. The plan covers the structure and its contents, but it can be expensive; experts say the surcharge can run as much as 150% higher than regular coverage if 200-foot brush-clearance and other requirements aren’t met. The average policy costs about $800 per year, said Fair Plan spokesman Mike Harris. About 2,400 of the state’s current 19,000 Fair Plan brush-wildfire policyholders are paying surcharges. The bare-bones plan does not provide theft, liability and other protection, so experts recommend that you buy an additional “wraparound” policy from an insurance company to fill in the gaps in the coverage. The cost varies by company.
So, if your fire insurance is not up to date — please make sure you double check with your agent and get your home covered….never know when another fire emergency occurs like it did two weeks ago. Thanks.
*************************************************************************************************************************************
No Green tip this time.. no room – Sorry about that!
*************************************************************************************************************************************
We have reduced the price of a few of my listings, 2371 Stratford Circle in Bel Air Crest is now $5,170,000 and my lease listing in Mountaingate is now $8000 and I have a new lease listing also in Bel Air Crest at 11814 Gwynne Lane. So if you are interested in any of these properties or know someone who might be, please get in touch with me.
